Answer:
Cross Price elasticity of demand = -0.06
The Goods are complements
If the demand for Hot dogs increased by 15% or more after Ketchup prices increased by 15%, then both items will be interpreted to be substitute items.
Explanation:
Cross Price elasticity of demand = % change in quantity demanded for Hot dogs / % change in price of Ketchup
= -1% divided by 15%
= -0.06
Based on the rules,
When Cross Price elasticity is > 0 = the products are substitutes
When Cross Price elasticity is = 0 = the products are independent
When Cross Price elasticity is < 0 = the products are Complements
This means therefore that Ketchup and Hot dogs are complementary items.
Answer:
correct answer is b. $444,000
Explanation:
given data
acquired = 40%
voting stock = $420,000
2020 Park earned = $120,000
2021 Park earned = $160,000
paid dividends = $50,000
paid dividends = $40,000
sold half of its stock in Park = $275,000
solution
we get here Balance at December 31 2020 that is express as
Balance at December 31 = Acquisition price + share in net income-share in dividend .........................1
put here value we get
Balance at December 31 = 420000 + (120000 × 0.4) - (60000 × 0.4)
Balance at December 31 = 444000
so correct answer is b. $444,000
Answer: a. $73,810.88
b. $10,185.18
Explanation:
a. The payments of $11,000 are constant so this can be considered an Annuity.
The cost of the Computer is it's present value which is,
Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods
= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)
= $73,810.88
b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.
The formula is the same but for the figures ,
Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods
73,810.88 = Annuity * 7.24689
Annuity = 73,810.88/7.24689
= $10,185.18
Answer:
Allowance for Doubtful Accounts 100 Accounts Receivable 100
Explanation:
The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the trade receivable and utilizes the allowance provided for
<u>When allowance is estimated </u>
Bad Debts (debit)
Allowance for doubtful debts (credit)
<u>When the actual figure of the amount that have gone wrong is obtained</u>
Allowance for doubtful debts (debit)
Account Receivable (credit)
Answer:
The correct answer is "corporate strategy"
Explanation:
FordTech is a software company whose clients are based in France. The company has formed a team to decide the direction the organization should take over the next five years. The focus of this team is to increase their clientele in Europe. The company is keen on taking advantage of the opportunities and avoiding threats in the changing environment. This team is involved in developing the corporate strategy for the organization.
Corporate Strategy takes a group of people to take strategic decisions making by looking across all of a firm’s businesses to determine how to create the most value to achieve company objectives while achieving a competitive advantage.
